17:30A-10 Insolvent insurers; notices; revocation or suspension of certificate or authority.
251 words·~1 min read·
/nj/title-17/chapter-30a/17-30a-10A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
10. a. The commissioner shall:
(1)Notify the association of the existence of an insolvent insurer not later than three days after he receives notice of the determination of the insolvency. The association shall be entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member insurer at the same time that such complaint is filed with a court of competent jurisdiction;
(2)Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.
b. The commissioner may:
(1)Require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this act. Such notification shall be by publication in newspapers of general circulation as the commissioner shall direct;
(2)Suspend or revoke, after notice and hearing, the certificate or authority to transact insurance in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. Such fine shall not exceed 5% of the unpaid assessment per month, except that no fine shall be less than $100.00 per month;
(3)Revoke the designation of any servicing facility if he finds claims are being handled unsatisfactorily.
L.1974,c.17,s.10; amended 1979, c.448, s.5; 2004, c.175, s.5.